On May 12, 2026, the S&P 500 Index is down 0.74%, the Dow Jones Industrial Average is down 0.55%, and the Nasdaq 100 Index is down 1.45%. This market decline follows a rally that set record highs earlier in the week, intensified by a weak performance in technology stocks and concerns surrounding rising inflation. Notably, the U.S. April CPI increased by 3.8% year-over-year, exceeding the expected 3.7%, marking the largest rise in nearly three years.
WTI crude oil prices have surged over 3% amid ongoing tensions in the Middle East, pushing the 10-year T-note yield up to 4.45%. The closure of the Strait of Hormuz, which facilitates about 20% of the world’s oil transit, is contributing to market uncertainties. Goldman Sachs estimates that recent disruptions have depleted nearly 500 million barrels from global crude stockpiles, potentially reaching 1 billion barrels by June.
As of now, 83% of the 450 S&P 500 companies that have reported Q1 earnings beat estimates, with projected earnings climbing 12% year-over-year. However, significant declines are observed in the chipmaking sector, with Qualcomm dropping over 9%, and airline stocks also plummeting as fuel costs rise. Markets are currently pricing in a 4% chance of a 25 basis point rate cut at the upcoming Federal Open Market Committee meeting on June 16-17.
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